Manila: The Asian Development Bank (ADB) returned to the US dollar bond market with the pricing of a $5 billion 5-year global bond, proceeds of which will be part of ADB’s ordinary capital resources.
“With investor interest in excess of $14 billion, this represents ADB’s largest orderbook for a global benchmark bond to date and is a hugely impressive outcome for ADB and the regional members it supports in Asia and the Pacific,” said ADB Treasurer Pierre Van Peteghem. “A coming together of factors contributed to the record $5 billion final print in the post-Easter issuance window, including attractive swap spreads and pick-up versus US Treasuries, and relatively low issuance supply in March. We continue to be delighted with the consistent and deep support provided by investors across sectors which helped underpin the momentum for this trade.”
The 5-year bond, with a coupon rate of 1% per annum payable semi-annually and a maturity date of 14 April 2026, was priced at 99.942% to yield 15.25 basis points over the 0.75% US Treasury notes due March 2026.
The transaction was lead-managed by BMO Capital Markets, Credit Agricole CIB, Deutsche Bank, and Goldman Sachs International.
The issue achieved wide primary market distribution, with 33% of the bonds placed in Asia; 48% in Europe, Middle East, and Africa; and 19% in the Americas. By investor type, 53% of the bonds went to central banks and official institutions, 21% to banks, and 26% to fund managers and other types of investors.
ADB plans to raise around $34 billion to $36 billion from the capital markets in 2021.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.